Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported negative free cash flow for the quarter, driven by a large operating cash outflow. Revenue increased compared to both the prior quarter and the same quarter last year, but cash conversion weakened sharply.
- Operating cash flow turned deeply negative, resulting in a free cash flow margin that was also negative, a significant reversal from the positive margins in both the prior quarter and the year-ago quarter. Capital expenditure was higher than in the preceding quarter but lower than the year-ago period.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow and free cash flow both weakened substantially. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$11.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$10.8B
Cash generated by operations before capital spending.
CapEx
$241.0M
Capital spending and related asset purchases.
FCF margin
-207.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-03-31 | $4.7B | -$1.3B | $149.0M | -$1.5B | -31.6% |
| 2024-06-30 | $4.7B | -$4.3B | $89.0M | -$4.3B | -92.6% |
| 2024-09-30 | $4.8B | $19.1B | $128.0M | $19.0B | 391.4% |
| 2024-12-31 | $5.3B | -$10.8B | $241.0M | -$11.1B | -207.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -601.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Swing
Operating cash flow shifted from a large positive balance in both the prior quarter and the year-ago quarter to a large negative balance in the current quarter. This swing was the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to turn negative, despite higher revenue and capital expenditure being relatively stable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned deeply negative, resulting in a free cash flow margin that was also negative, a significant reversal from the positive margins in both the prior quarter and the year-ago quarter. Capital expenditure was higher than in the preceding quarter but lower than the year-ago period.
Compared to the immediately preceding quarter, revenue improved while operating cash flow and free cash flow both weakened substantially. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower.
Monitor the magnitude and direction of operating cash flow in the next quarter, as it was the primary factor behind the negative free cash flow.